Insure yourself wisely: Plan your money, plant for your future needs

Insure yourself wisely

Plan your money, plant for your future needs

Europeans are getting older. While today there are around three working-age people per retired person, it is expected that in 2070 there will be fewer than two, putting pressure on state pension systems.

This requires you to take additional steps to ensure you will enjoy adequate income to meet your needs in retirement.

PLAN YOUR MONEY, PLANT FOR YOUR FUTURE NEEDS

Thinking ahead about your retirement needs can be hard. Many young — and not so young — people believe that pensions are something to think about later in life and postpone pension-related decisions.

Like growing plants or trees, retirement saving requires a bit of planning and foresight. Gardeners must plan their garden and determine which plants will thrive in that environment. Similarly, when saving for your retirement you must take into account your current financial situation and consider your expected future needs in retirement and the income required to cover them so that you can choose the pension plan that best suits your needs.

What is a pension?

PLAN YOUR MONEY, PLANT FOR YOUR FUTURE NEEDS

What is a pension?

SOW THE SEEDS

The first step to growing your retirement savings is to start saving early and enough. The earlier you start, the more time your money has to grow. It is important that your long-term pension plan matches your long-term goals and will provide you with enough to live on in retirement.

Insurers provide different types of long-term savings solutions, including occupational pensions and personal pensions. The products offered by insurers often combine an investment element with some form of protection, for example financial guarantees protecting the money you invested. Your insurer can help you to find the product that best suits your needs.

PROVIDE SUNLIGHT

Just as plants and trees need sunlight to grow, your pension savings need exposure to the right asset mix to achieve your retirement goals. Different types of insurance savings products enable you to gain exposure to a well-diversified, long-term investment portfolio.

Many investors are also concerned about the impact that their investments have on the world around them. By incorporating sustainable investments into your pension plan, you can not only secure your financial future but also contribute to a better world.

WATCH IT GROW

Your retirement savings are now beginning to grow. Keeping an eye on how your savings grow will motivate you to keep up your efforts. Bear in mind that important life events such as getting married, moving abroad or changing your job can have an impact on your retirement plans.

Many people are at significant risk of realising too late that their pension will not be enough to ensure an adequate standard of living. To avoid this happening to you, it is important to review your financial planning for retirement on a regular basis.

Many European countries have set up pension tracking tools that can give an overview of your future pension entitlements. These usually cover your state retirement income and your occupational pensions. You might also receive an annual statement providing an overview of your current personal pension savings and what they might translate into in terms of expected benefits. You can use these tools to check whether you are on track to reaching your retirement goals.

What kind of pension products do insurers provide?

HARVEST THE FRUITS OF YOUR LABOUR

By starting early, choosing the right pension plan, monitoring your savings regularly, and remaining disciplined and committed to your goals, you can enjoy the fruits of your labours and spend your retirement doing the things you love, knowing that your savings are there to support you.